There is a part of these operating expenses paid for by money, that otherwise would be returned to the Treasury , that keeps increasing as the money supply keeps increasing. That is what is called Interest on bank reserves. Unnecessary, perhaps, in my opinion, but less of a problem is Interest paid on Required Reserves, (that, usually, 10% of the value of bank deposits Commercial Banks are required to keep as cash) (any cash, coins, paper currency or, in the main, virtual money). Paying interest on Required Reserves is less of a problem because at least the banks are still encouraged to lend out the money rather than hold onto it.
My daughter came home from school early, and called me at work (luckily I was in the country), saying that she had been suspended for fighting. She didn’t want to talk about if further. The only word from the principal was “She has a two week suspension.” I left my office and went home, grounding her and removing her phone. The next morning, I took her to school. The principal was out front, and said “she cannot enter the school, because she is suspended.”. I said, she IS entering the school, and we are going to your office, unless you prefer to have this conversation here — and proceeded to walk right past him.
I told him that my daughter was going to have that suspension lifted, and removed from her record — and that the boy who ATTACKED her had a choice face a 30 day suspension, with mental evaluation, or face felony charges. He called the boy’s mother, who threatened charges against my daughter. I said, let’s just let the police sort it out, then but no college is going to accept a kid with a felony sexual assault, and I have more than enough young ladies that will testify that he has done the same thing to them to ensure a conviction. The principal then made a comment about not threatening one of the finest families in the city, to which I responded. I do not make threats but I do make promises. Somebody needs to let this little jerk know that this is not acceptable BEFORE he winds up as an adult in prison.
When I met him I knew him because we had the same friends and I went to school with his cousins. He was talking to other women behind my back on and off. I would confront him and try to talk things out with him. He saw the tears run down my face and would say ok i won’t do it again but he kept doing. I felt really stupid but I was the one who gave him the benefit of the doubt. He did it again a month before we were suppose to marry and something inside of me clicked. I was not upset, didn’t cry. I told him I needed to speak to him.
He said it wasn’t him yet nobody else has his photos so i knew he was lying. I didn’t say much to him for a few days and he started crying and drinking. I ended up kicking him out. He had the nerve to text me and say oh you should have given me a two week notice. My response was for what for breaking my heart?!? plus we were renting at my mother’s house and she didn’t know what happened plus she didn’t even know i kicked him out. Also we didn’t have a contract it was more of a verbal agreement of ok you can live here as long as rent is paid no issues and you clean up behind yourself.
In fact the more they keep lending and the bigger the total bank deposits get, the larger will become the amount of reserves counted as Required Reserves, since Required Reserves are equal to 10% of total bank deposits. As the amount of bank deposits grow, so also does the amount of bank reserves that count as Required Reserves. So paying Interest on Required Reserves is not going to discourage lending. It still is an extra expense for the Treasury, since the Interest paid on Required Reserves, being treated by the Central Bank as operating expenses, does come out of money that would otherwise be returned to the Treasury.